U.S. Economy: 4 Reasons Housing Will Decline In 2026
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Bret JensenInvesting Group LeaderFollow5ShareSavePlay(8min)CommentsSummaryMarkets are heading to their third straight year of outsized gains in 2025, thanks largely once again to the performance of the Magnificent Seven.As we enter 2026, there are growing concerns around a potential AI bubble forming and increasing worries around private credit after a couple of unexpected bankruptcies.The housing sector also remains moribund and the health of the housing market is a primary component of consumer sentiment.The article below explores four key reasons existing home sale prices are likely to drop in 2026, which will be a headwind for the economy and markets. Peter Hansen/iStock via Getty Images Today, I am again circling back on the housing sector as we are about to turn the page on 2025. It has been a third straight year of outsized gains for equities. Of course, most of this performanceThis article was written byBret Jensen54.96K FollowersFollowBret Jensen has over 13 years as a market analyst, helping investors find big winners in the biotech sector. Bret specializes in high beta sectors with potentially large investor returns.Bret leads the investing group The Biotech Forum, in which he and his team offer a model portfolio with their favorite 12-20 high upside biotech stocks, live chat to discuss trade ideas, and weekly research and option trades. The group also provides market commentary and a portfolio update every weekend. Learn More.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.